Bay Point Advisors entered into a senior secured debtor-in-possession financing agreement with a network of blockchain mining companies comprising VC Mining Enterprises, Godby DC-5, Godby DC-4, Hemphill Avenue and Virtual Citadel (collectively “the company”), which filed for bankruptcy protection under Chapter 11 under the United States Bankruptcy Code.
Under the agreement, Bay Point Advisors committed $7.5 million in new funding to support the company through the Chapter 11 process. This additional financing provides the company with a financial foundation to support existing operations, restructure costs and satisfy prior debt obligations.
The company will work with its stakeholders toward establishing a consensual Chapter 11 plan to maintain existing infrastructure while ensuring consistent operations. The company expects to implement necessary restructuring that will lead to profitable on-going operations and a potential sale of the company. Marshall Glade of Glass Ratner is serving as the restructuring advisor and David Gordon of Polsinelli is serving as the company’s legal advisor. John Isbell of the Law Offices of John F. Isbell served as legal advisor to Bay Point Advisors.
“This is another example of Bay Point Advisors working with a distressed borrower through a difficult situation to maximize value for all stakeholders. We look forward to working with others in similar situations in the future,” Charles Andros, president and chief investment officer of Bay Point Advisors, said.
“Bay Point Advisors stepped up in a difficult situation and has allowed the debtor time and flexibility to enhance creditor recoveries,” Glade said. “Their knowledge and comfortability with the bankruptcy process has made them a great partner to work with.”
Bay Point Advisors is a specialty lender focused on asset-based loans of all types, including commercial and residential real estate, development financing, private business funding, bridge loans and debtor-in-possession financing.
